Newfoundland CMHC Insurance

Location Please ensure your location is correct in order to find the best rates available in your area.

In Canada, homebuyers with less than 20% down payment are required to purchase mortgage default insurance, or CMHC insurance. Mortgage default insurance protects lenders in the event a home buyer defaults on a mortgage. Thanks to this protection, lenders can offer lower mortgage rates for higher risk mortgages and mortgages with lower down payments

Newfoundland CMHC Insurance Calculator

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 STEP 1
Enter the price of the home you're interested in and press GO.
Down payment Down payment The amount of money you pay up front to obtain a mortgage. The minimum down payment in Canada is 5%. For down payments of less than 20%, home buyers are required to purchase mortgage default insurance, commonly referred to as CMHC insurance.
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Amortization period Amortization period The length of time it will take a homeowner to pay off his/her mortgage. In Canada, the maximum amortization period for insurable mortgages is 25 years. Longer amortization periods allow homeowners to make smaller monthly payments, but equate to more interest paid over the life of the mortgage.  
 
STEP 2
Choose an amortization period.
Mortgage insurance Mortgage insurance Mortgage default insurance, commonly referred to as CMHC insurance, protects the lender in the case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%, which are known as high ratio mortgages. Mortgage default insurance is calculated as a percentage applied to your mortgage amount. plus
Total Mortgage Required equals $- $- $- $-

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CMHC insurance premium rates and regulations in Newfoundland are the same in the rest of Canada. Insurance premium rates vary from 2.80% to 4.00% of the mortgage amount. Additional federal policies on CMHC insurance also apply:

  • CMHC insurance must be purchased for all homes with less than 20% down payment.
  • Homes purchased for more than $1 million are not eligible for CMHC insurance, therefore requiring homeowners to put more than 20% down.
  • The maximum amortization period on CMHC insured mortgages is 25 years.
  • Homes sold over $500,000 can no longer be purchased with a 5% down payment. The new minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.

The CMHC insurance premium is added to the mortgage amount and is paid off through monthly mortgage payments over your amortization period.


Newfoundland mortgage default insurance rates

The CMHC insurance premium is calculated as a percentage of your mortgage amount. This percentage varies depending on your down payment amount.

Down payment (% of home’s price) 5% - 9.99% 10% - 14.99% 15%-19.99% 20% or higher
CMHC insurance premium 4.00% 3.10% 2.80% 0%

The amortization period for CMHC insured homes must be 25 years or lower.


Sample Calculation for CMHC insurance in Newfoundland:

For a $300,000 home with a $40,000 down payment and an amortization period of 25 years. Your insurance premium would be calculated as follows:

Newfoundland CMHC insurance calculation
( $40,000 down payment ÷ $300,000 home price) =
13.33% down payment percentage
$300,000 home price $40,000 down payment =
$260,000 mortgage before CMHC
( $260,000 mortgage before CMHC 3.10% CMHC tax rate) =
$8,060 CMHC insurance premium
$260,000 mortgage before CMHC $8,060 CMHC insurance premium =
$268,060 total mortgage

You will pay the insurance premium of $8,060 in your monthly payments.


Mortgage default insurance rates with a non-traditional down payment - Newfoundland

Using non-traditional sources of down payments will incur a rate increase on your insurance premium for down payments from 5% - 9.99%. Non-traditional sources of down payment include borrowed funds and gifts from non-immediate family members.

Down payment (% of home’s price) 5% - 9.99% 10% - 14.99% 15%-19.99% 20% or higher
CMHC insurance premium 4.50% 3.10% 2.80% 0%

Mortgage default insurance rates for self-employed, non-verified income - Newfoundland

Self-employed home buyers without 3rd-party income validation are should be aware of additional regulations. Self-employed home buyers must pay at least 10% down payment and the insurance premiums rates on down payments from 10% - 19.99% are higher than those for regular applicants.

Down payment (% of home’s price) 5% - 9.99% 10% - 14.99% 15%-19.99% 20% or higher
CMHC insurance premium N/A 4.75% 2.90% 0%